Bitcoin Coinbase Premium Gap Indicates Decreasing Selling Pressure
An analyst has pointed out that the selling pressure on Coinbase has been diminishing recently. This observation is based on the “Coinbase Premium Gap,” which measures the difference between Bitcoin prices on Coinbase and Binance.
When the Coinbase Premium Gap is positive, it suggests higher buying pressure on Coinbase or lower selling pressure. Conversely, negative values indicate greater buying pressure on Binance.
Bitcoin Coinbase Premium Gap Trend
A chart depicting the trend in the Bitcoin Coinbase Premium Gap over the past few weeks shows a significant decline after the launch of spot ETFs. Prior to this event, the gap had remained positive, indicating strong buying pressure on Coinbase, likely from US institutional investors accumulating before the ETFs.
However, after the initial crash following the ETF launch, the premium gap turned negative, reflecting increased selling pressure from American holders. Subsequent price drops further elevated selling pressure.
In recent days, despite further price drops, the Coinbase Premium Gap has not reached highly negative values and has even briefly returned to neutral. This suggests that selling pressure from US institutional traders may be weakening.
Potential for Rapid Price Recovery
Based on this pattern in the Coinbase Premium Gap, there is a high likelihood of a rapid price recovery according to the analyst. The decrease in selling pressure from US institutional traders indicates a more balanced market between them and global investors who use Binance.
Bitcoin Price Breaks Below $39,000
Following the recent drawdown, Bitcoin has fallen below the $39,000 level for the first time since December.
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